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Form AP 10

Index Reference__________

Audit Program for Cash

Legal Company Name Client:

Balance Sheet Date:

Instructions: The auditor should refer to the audit planning documentation to gain
an understanding of the financial reporting system and the planned extent of testing
for cash balances. Modification to the auditing procedures listed below may be
necessary in order to achieve the audit objectives.
All audit work should be documented in attached working papers, with appropriate
references noted in the right column below.

Audit Objectives Financial Statement

Existence or occurrence
Cash physically exists and is owned by the company
as of the balance sheet date. Rights and obligations
Existence or occurrence
Cash receipts and cash disbursements are recorded
correctly as to account, amount, and period.
Valuation or allocation
Existence or occurrence
Cash balances include funds at all locations, funds
with custodians and deposits in transit.
Presentation and disclosure
Rights and obligations
Cash is properly classified and presented in the
Presentation and disclosure
financial statements, and adequate disclosures are
made with respect to restricted cash.
Performed Workpaper
By Reference
1. Explain significant fluctuations in the amounts in
cash balances from the prior year.

2. Prepare or obtain from the client a listing of all cash

accounts open as of the balance-sheet date or opened
and closed during the period under audit, showing
(a) account number and type, (b) custodian, and (c)
balance per the general ledger.

3. Request that the client prepare bank confirmation

forms for bank/custodian accounts used during the
period under audit (including accounts closed as of
the balance sheet date). Maintain control of the bank
confirmation forms and mail directly to the

4. Ask the client to request copies of the daily bank

statements (including all supporting documents) for
a period of 5 days subsequent to the balance-sheet
date to be mailed by the bank directly to the auditor.

5. Prepare or obtain an analysis of savings accounts,

certificates of deposit, and other interest-bearing
accounts showing (a) name of institution, (b) interest
rate, (c) maturity date, (d) balances at the beginning
of the period, (e) activity during the period, (f)
balances at the end of the period, and (g) interest
income and related accruals, and perform the

a. Trace book balances, interest income, and

interest accrued to the general ledger.

b. Compare balances and interest rate per

passbooks and certificates of deposit to returned
confirmation forms.

c. Test the arithmetical accuracy of the analysis.

d. Recalculate interest earned and evaluate results

for reasonableness.
Performed Workpaper
By Reference
6. Prepare or obtain a schedule of bank payment orders
for a period of 5 days before and after the balance
sheet date, showing the (a) name of disbursing bank,
(b) payment order or transfer number, (c) amount of
transfer, (d) date transferred out per books, (e) date
transferred out per bank, (f) name of receiving bank,
(g) date transferred in per books, and (h) date
transferred in per bank, and perform the following:

a. Review the cash receipts and cash disbursements

journal, bank statements, and journal entries for
5 days before and after the balance sheet date and
determine whether they are all included in the
schedule of bank payment orders.

b. Determine if all receipts and disbursements per

books are recorded in the correct period.

c. Investigate any disbursements with bank

statement dates that precede the dates per books.

d. Determine whether the number of days’ lag

between bank statement dates and dates per
books appears reasonable and investigate any
unusual delays.

7. If bank statements are not requested and/or not

received directly by the auditor, obtain the bank
statement for the month subsequent to the balance-
sheet date and perform the following:

a. Test the arithmetical accuracy of the bank


b. Compare bank payment orders listed in the bank

statement to the totals per the client’s records.

c. Foot client’s copies of deposits slips and

compare them to totals show per the bank

d. Inspect the bank statement for alterations.

Performed Workpaper
By Reference
8. Determine which petty cash funds should be counted
and perform the following:

a. Count petty cash funds in the presence of a client


b. Summarize cash counted by denomination.

Include other items such as coins and other

c. Reconcile the balance per the custodian to the

general ledger.

d. At the conclusion of the count, return all items to

the custodian and ask for a signed receipt.

9. Ascertain that the requests for bank confirmations

and confirmations with other custodians have been
received, signed, and all questions have been
answered. Follow up on all comments and missing

10. Review the confirmations received from the banks or

other financial institutions and determine whether
any of the following exists:

a. Accounts are subject to withdrawal restrictions,

minimum balance requirements, or compensating

b. Guarantees, letters of credit, or contingent


c. Arrangements for related parties, such as


d. Commitments and contingencies.

Based on the procedures performed and the results obtained, it is my opinion that the
objectives listed in this audit program have been achieved.

Performed by Date

Reviewed and approved by Date